Pension tax breaks in Leeds

HUNDREDS of millions of euro are expected to be invested in British property by individual Irish investors availing of pension tax breaks in the coming months.

The first product to exploit budget changes to allow pension schemes borrow for investment has been launched by the Prestige Group to invest in apartments in the centre of Leeds.

The geared property pension fund provides investors with a significant tax shelter and is targeted at executives, company directors self-employed and senior executives with additional voluntary contribution schemes (AVCs).

Investors will provide 30% of the £126,000 for fully furnished one bedroom apartments or £231,000 for two beds and over an agreed period clear the remaining principle through annual tax efficient pension payments to the fund. Rent income will also be tax free to the fund.

Prestige Group chief executive Paul Coghlan, said: “This is a great opportunity for investors. Being able to combine property investment when their pension scheme has the subsequent tax breaks and makes perfect sense.

“There are very few opportunities on the market like this offering residential property and we have worked hard to get this deal in place for the benefit of our clients.

“With the expertise of Irish Life, and our consistency in achieving great returns on our properties, I am confident this will be the start of a very popular investment vehicle.”

The Dublin based company which has close to 50% of its clients in Cork is working with Irish Life and Permanent plc and its sister company, Prestige Financial Planning Ltd, to part fund the purchase of luxury residential property in Leeds

“Delivery of the project is not expected for 30 months, further enhancing the investment opportunity. The tax and financing benefits will mean that this exclusive project will not only see investors maximise their pension returns, but also give them more control over the direction of funds,” the company said.

Under the proposed fund The Prestige Group is proposing unit investments in the tower development, Bridgewater Place, in Leeds. At 110 meters high, it is based on the concept of an urban mixed-use development, blending together offices, residential apartments, ancillary commercial/leisure and public spaces over its 30 floors.